DTI projected one million online businesses in 2022. Let’s take a look at the latest eCommerce trends so your business can ride the ever-rising eCommerce in the Philippines!
The age of social media and technological advancements undeniably affected the retail industry. While online markets have been increasing for some time, the pandemic has accelerated several of these online shopping trends: social commerce, same-day delivery, live streaming, and telemedicine, to name a few.
Everyone can sit on their computers or phones for a few minutes, and you wouldn’t know that they have already shopped a month’s worth of food and house supplies! eCommerce has made our lives easier, which is why Filipino consumers still intend to buy on e-commerce platforms post-pandemic.
If your business is not yet digital, it’s not too late to start an eCommerce business this 2022. But with the projected one million businesses going digital this year, you might be wondering,
“How can my business stay relevant and stand out?”
Let’s dive deep!
eCOMMERCE TRENDS IN THE PHILIPPINES FOR THIS YEAR
The key factors for these latest eCommerce trends are the following:
- Convenience – Filipinos are always on the lookout for fast and efficient time-saving solutions. 56% of Filipino consumers reported looking for efficient delivery or payment collection services when buying online.
- Cost – Filipino consumers want value for their money. They prioritize getting the best deals when shopping online. That said, most will still buy from businesses that they know and trust. Specifically, those that can guarantee safety and quality.
- Channel – Having a digital presence is more important than ever as more consumers shop and buy online. Knowing where your customers are and understanding what drives them are critical to succeed online. So is adopting new strategies.
Let’s look at the latest eCommerce trends in the Philippines this year.
It’s not always a pricing war, even if many buyers are looking for the best deals. Most consumers are loyal to their brands and don’t intend to change their behaviors. However, companies must identify and optimize their market segmentation based on their spending power and buying preferences.
Moreover, money is tight and customers are wary of spending it. Businesses need to have a customer-first approach first and foremost. By understanding how your customers think, feel and decide, you’ll know pretty much everything you need to create and offer great products and services that people actually want.
Businesses and brands must ADAPT as people redefine their priorities, given that COVID is here to stay.
Adoption of Digital Tools
More and more MSMEs are adopting digital platforms to service their clients. The increased number of startups enabling digital transformation is driving the Philippines’ economy to reach P5 trillion by 2030, or 27% of the country’s GDP last year.
That said, we are still five years behind digital adoption. Access to financial resources, digitally-competent workers, and reliable infrastructure remain barriers to digitalization.
DTI’s eCommerce Roadmap for 2022 highlights the need to understand the eCommerce ecosystem and architecture. This ecosystem requires industry enablers, government institutions, NGOs, academia, and MSMEs to work together in improving digital transformation.
|Pro-tip: Partner with a website builder provider, like Prosperna, that already has an ecosystem of local payment and shipping providers to save you future headaches!|
Fully Cashless Payment
While cashless payments are already available in the Philippines, cash on delivery remains a popular payment mode. Flexible payments and cashless no-collateral loans, like Home Credit, make it possible for Filipinos to make expensive purchases without having to pay in full right away, as cash on delivery tends to impose.
Platforms like PayMongo, PayPal, PayMaya, Dragonpay, and GCash are much safer because you’re not releasing any hard cash. These alternative financial service providers have also made traditional banking services like saving, investing, and online bank transfers accessible for all Filipinos, even those in far-flung provinces.
When you start an eCommerce business, be sure to offer your customers multiple payment options, online and offline. Online shoppers want to buy from companies that make online purchasing a breeze.
Eco-Friendly eCommerce Businesses
Out of all the eCommerce trends in the Philippines, this is perhaps the most beneficial for small-to-medium sized businesses because they tend to cater to a niche of consumers that are smaller in numbers. They can easily focus on making their products eco-friendly from formulation to packaging and even production.
Consumers are caring more about sustainability and supporting small local businesses. Especially true for Gen-Z and Millenials, who are among the top online consumers.
On the flip side, small businesses partner with local farmers to help bring their fresh produce to different communities around the metro through social media and eCommerce stores. And of course, selling secondhand, pre-loved items has increased in the Philippines eCommerce scene. Ukay-ukay is one of the top eCommerce trends in 2021, and it will continue this year.
Extended Reality (XR) Technology
Technologies like augmented reality (AR), virtual reality (VR), and mixed reality (MR) are bound to become relevant in eCommerce. From testing products virtually before making the purchases to giving a sense of what they may look like. With or without a headset, advancements in this field will eventually play a role in selling products like clothes, gadgets, and home appliances.
And then, there’s the metaverse. A virtual realm brings together commerce, education, entertainment, community, wellness, and work. With consumers increasingly interested in interacting with businesses personally, virtual spaces present an extra avenue for brand interaction and product discovery. The metaverse encourages people to engage, produce, and contribute rather than passively consume material.
Data and Personalization
With companies all vying for the same customer data, marketers must think carefully about what they are offering customers. Google will block third-party cookies in Chrome from 2023. Brands that listen will have opportunities. Knowing your clients, consumers, and people is more important than ever!
Loyalty schemes, personalized offers, and other incentives encourage customers to set up accounts on eCommerce stores or share information when buying in-store. These will have the added benefit of building valuable first-party data as businesses prepare for the post-third-party cookie era.
|Did you know that Prosperna can help you set up your eCommerce store with more personalization to upgrade your chosen myStore theme?|
DIFFERENT INSIGHTS BUSINESSES SHOULD CONSIDER IN 2022
Great business decisions start with great data. You need to know how your audience thinks and what motivates them. Using insights, together with your business acumen and “gut instinct”, ensures sniper-like precision.
That said, data can be contradictory. Data comes from humans who have varied and opposing points of view. All of those nuances must be considered before following top eCommerce trends.
One interesting example: people are concerned about their personal privacy but, at the same time, some people don’t think twice about sharing everything on social media.
So, how do we reconcile this in Philippine eCommerce? Read on to find out!
Protect Consumer’s Data Privacy
In response to growing calls for improved online data privacy protection, tech companies are slowly implementing their own monitoring limits. Apple, for example, limits the ability of App Store publishers to gather user data. Google Chrome will also block third-party cookies starting in 2023.
Data privacy is critical in gaining your customers’ trust. In fact, 59% of Filipino consumers are more protective of their personal data and 47% said that a company’s ability to protect their personal data impacts how much they trust a brand. Online businesses in the Philippines must reassess their ability to protect customer privacy and their level of transparency.
At the end of the day, protecting your consumers’ data privacy is NON-NEGOTIABLE in the eCommerce industry.
Create Engaging Content
It’s more important than ever to swiftly get your brand’s message across online. Especially now that people and brands creating content are increasing by the day. Attention is the most-prized currency in today’s digital age. Consider these for your marketing strategy:
- Short-form posts and videos under three minutes are encouraged as people’s attention span decreases.
- On-demand podcasts are also gaining traction as Filipinos multi-task while working from home.
- Live streaming continues to create increased engagement as social platforms continue to push this kind of content.
But here’s the thing: not all content is created equal and not all content strategies will work for every business and brand. You need to go back to the basics. Know your market. Find out where they are hanging out online. Identify what they want to know and how they want to consume content. You might be surprised – some still prefer long-form recorded content!
Leverage User-Generated Content
User-generated content (UGC) is a powerful social media marketing tool. People want to be heard. Some even enjoy supporting the brands they trust with social posts, testimonials, and reviews.
User-generated content has several benefits for brands that go beyond conversions. Word of mouth is the best form of marketing, and user-generated content is the best kind of social proof. It helps:
- potential customers learn what existing customers like about your company
- increase brand awareness and reach organically
- build trust by showing your customers that their stories count
|Pro-tip: UGC can also come from your employees. So tap those who are already active on social media to be your brand ambassadors!|
Use Social Platform to Sell Products and Services
As consumers become more accustomed to purchasing things directly from the platforms they frequent, social commerce is becoming increasingly important. Small businesses can now market and sell directly to customers inside social media at a reduced cost. Just take a look at Facebook Marketplace and Instagram shopping as examples.
Here’s another reason why you should consider social commerce. 65% of online shoppers use social media to research a brand, while more than 50% discover new brands through social media ads. So if your marketing strategy does not include social media – you’re missing out.
|Pro-tip: Use a social commerce app that directly integrates to social platforms to provide a frictionless shopping experience.|
Maximize and Utilize Local SEO
As consumers prefer less crowded places and support more local small businesses, MSMEs will significantly benefit from local SEO. Companies can enhance their visibility in local search results for phrases relating to their business, products, or services by adopting local search optimization tactics.
Today, over half of all Google searches are local. Google saw a 900 percent rise from 2017 to 2019 in searches for “near me today/tonight”. Google began giving more results for geo-related searches based on proximity, relevance, and prominence to serve its users better.
So what does this mean for small businesses in the Philippines? Suppose your business is near where someone is searching, offers services or items they are looking for, and has optimized local business listings. In that case, you are more likely to be found online.
Think Omnichannel and Hybrid
Filipinos’ increasing propensity to purchase online will likely influence physical mall space absorption beyond 2022. That said, online and offline shouldn’t have to compete when they can achieve common business goals.
Think about it. Some online shoppers buy in phases across several eCommerce platforms and devices, including brick-and-mortar stores.
They usually discover a brand or product via social media or word of mouth. If a consumer is interested, they will visit its website and read online reviews. They use a mobile device to shop or book appointments. Customers can choose from a variety of service and delivery options. Alternatively, they can order online and pick it up in-store.
|Pro-tip: FAST-TRACK your eCommerce business when you leverage technology, implement hybrid techniques, and adopt an omnichannel marketing strategy.|
WHAT eCOMMERCE BUSINESSES AND CONSUMERS CAN EXPECT IN 2022
The Philippines eCommerce industry is, without a doubt, a profitable industry this year. With the rapid increase of developing technologies, the possibilities for online business in the Philippines are limitless!
Online shoppers’ demands are rapidly changing as we learn to live with the pandemic. Companies that understand the value of agility and responsiveness will be better positioned to meet the uncertainty that 2022 brings.
After all, the best businesses are businesses that are “built to last”. Every industry and era is driven by cycles. The real question here is:
How can you incorporate the right formula of PEOPLE, PROCESS, TECHNOLOGY, AND CULTURE to minimize the downside while always being ready to act on opportunities that arise?
The Philippine eCommerce roadmap for 2022 is about creating a new narrative – a better narrative. Are you in?
CREATE A BETTER NARRATIVE, START AN eCOMMERCE BUSINESS
You won’t get anything done if you try to do everything. Keeping up with trends is important for business success, but you can’t do it all. Take a step back. Look at your own business and consumer data to see which top eCommerce trends make sense for you to adopt.
Keep in mind that different businesses and industries will require different needs. But having an eCommerce platform is a CONSTANT if you want to take your online business in the Philippines to the next level this 2022.
Build your eCommerce store with a website builder that you can trust!
- Set up your eCommerce website for as low as USD $25.50 (PHP 1,275).
- Accept multiple online and offline payment options.
- Offer nationwide delivery through local shipping providers.
- Connect to multiple social channels and online marketplaces.
- Enjoy local support and our “we do it for you” service.
READY TO START YOUR eCOMMERCE BUSINESS IN THE PHILIPPINES?
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